If you're an investor, you will now finally understand what companies representing a great part of your holdings are doing with their spare money and why, as well as possible new market opportunities. And if you're an executive, strategist, or analyst, you will gain the capacity to decide whether this is pure madness or not. This very short piece boils down to one conclusion: Every advance in AI has been driven by one thing only: computation directed toward learning and search. It's not algorithmic breakthroughs; it's not data; what determines the next step-function improvement is more computation being made available at scale. Assuming $25,000 per H100, Meta's investment alone is around $8.75 billion. As for the rest, they are buying NVIDIA's new GPUs, Blackwell, retailing at prices between $1.8 to $3 million (each GB200 has 72 GPUs, the difference is how many you stack on a single rack, 36 or 72). Assuming 80% of those orders are in the GB200 NVL36 form factor (2 racks), which is...
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